Steels of the type indicated in the preamble usually are referred to as cold work steels. Dies for cold extrusion of metals; deep drawing and powder pressing counter dies; knives and other tools for shearing and cutting, etc., are typical applications of cold work steels. A powder-metallurgically manufactured high speed steel having the composition 1.28 C, about 0.3 Si, about 0.5 Mn, 4.2 Cr, 5.0 Mo, 6.4 W, 3.1 V, balance Fe and impurities, is a well known steel for this type of applications. A drawback of this steel is that it does not have a toughness that satisfies highest demands. Another powder-metallurgically manufactured steel known in the art has the composition 1.5C, 1.0 Si, 0.4 Mn, 8.0 Cr, 1.5 Mo, 4.0 V, balance Fe and impurities. This steel also after tempering has a comparatively high content of rest austenite, which is attributed to the high chromium content, which reduces the hardness. Therefore it is a long felt demand of a material which combines the best features of the said steels. More particularly, this can be expressed such that there is a demand of a steel which affords optimal features as far as toughness, wear resistance and hardness for the intended field of use are concerned at the same time as the total content of alloy elements, and particularly the most exclusive alloy elements, are kept at a comparatively low level in order to make the material favourable also from a cost point of view.